German Industrial Orders Reduced Unexpectedly in July
Today’s data once again confirm that the Europe's largest economy are feeling the impact of US President Donald Trump's protectionist trade policies. German industrial orders unexpectedly declined in July.
Data of the statistical office Destatis showed, that production orders, an indicator that includes shipments, inventories, as well as new and unfulfilled orders, fell by -0.9% mom in July after a more significant decline by -3.9% in June (revised from -4%). Economists predicted an increase in the figure by 1.8%.
The main driver was a decrease in foreign orders, which fell 3.4% from June to July. Orders for German goods from outside the euro area were down 4.0%. While overseas orders dipped, German domestic orders increased by 2.4%.
Meanwhile, the Ifo Institute for Economic Research has raised its 2018 growth forecast for Germany from 1.8% to 1.9%, citing a stronger than expected first half of the year. It also forecasts gross domestic product growth rates of 1.9% in 2019 and 1.7% in 2020. The DIW economic institute and the IWH research group said separately that they predicted German growth of 1.8% in 2018 and 1.7% in 2019.